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THE MINISTRY OF FINANCE

THE MINISTRY OF FINANCE

CIRCULAR No.5/1998/TT-BTC OF JANUARY 9, 1998 OF THE MINISTRY OF FINANCE GUIDING THE PROCEDURES FOR MAKING AND MANAGING DEPOSITS OR ESCROW DEPOSITS FOR MINERAL EXPLORATION PERMITS

Pursuant to Article 27, Chapter 5 of the Law on Minerals of the Socialist Republic of Vietnam;

Pursuant to Article 30, Chapter VI of Decree No.68-CP of November 1st, 1996 of the Government detailing the implementation of the Law on Minerals;

The Ministry of Finance hereby guides the procedures for making and managing deposits or escrow deposits on mineral exploration permits as follows:

I. GENERAL PROVISIONS

1. Objects and scope of application: All organizations and individuals granted mineral exploration permits (excluding activities of exploring oil, gas and other kinds of natural water, which are regulated by other legal documents) which are valid for 6 months or more, except for organizations and individuals having mineral exploration permits and operating with the State's direct investment capital, shall have to make deposits or escrow deposits thereon.

2. An organization or individual engaged in mineral exploration activities shall be entitled to opt for the form of deposit at the State Treasury or the form of escrow deposit at a bank (a Vietnamese bank or a foreign bank licensed to operate in Vietnam).

3. The amount of the deposit or escrow deposit shall be equal to 25% of the value of the estimated exploration cost of the first year of exploration and shall be made in one installment before the mineral exploration permit is granted.

4. After 6 months from the effective date of the granted mineral exploration permits, if the mineral exploration activities are carried out according to the set schedules and plans, the concerned organizations or individuals conducting the mineral exploration shall be entitled to have their deposits or escrow deposits refunded.

5. During the deposit period, the deposits or escrow deposits shall be eligible for interests at the rates applicable to demand deposits at the banks or treasuries.

6. The mineral exploration permit granting agency shall be competent to request the payment, refund or remittance of deposits or escrow deposits into the State budget.

II. SPECIFIC PROVISIONS

1. The procedures for making deposits or escrow deposits

- When a mineral exploration project is approved, before granting a mineral exploration permit, the permit granting agency shall have to notify in writing the project owner who applies for the mineral exploration of the deposit or escrow deposit amount to be made.

- Based on the written request for deposit or escrow deposit from the competent level, the concerned organization or individual shall make the deposit at the State treasury or the escrow deposit at a bank proposed by the organization or individual conducting mineral exploration at the prescribed level.

- The concerned State treasury or bank shall have to open an account to monitor in details each permit, each organization or individual and carry out procedures for certifying the making of deposits or escrow deposits.

2. The procedures for refunding deposits or escrow deposits

- After 6 months from the effective date of the granted mineral exploration permits, if the mineral exploration activities are carried out according to the set schedules and plans, the concerned organizations or individuals shall be entitled to have their deposits or escrow deposits refunded. Basing itself on the written permissions from the competent level for the refund of deposits or escrow deposits, the State concerned treasuries or banks shall carry out procedures for refunding deposits or escrow deposits to such organizations or individuals.

- If after 6 months from the effective date of the granted mineral exploration permits, the exploration activities have not been carried out and/or the mineral exploration permits have been withdrawn, the deposits or escrow deposits shall be remitted into the State budget.

- The Ministry of Finance shall authorize the agency competent to grant permits to issue notices of remittance of deposits into the State budget. The State treasuries or banks shall base themselves on the notices of remittance of deposits into the State budget issued by the competent level to carry out procedures for remitting deposits or escrow deposits into the State budget.

III. ORGANIZATION OF IMPLEMENTATION

This Circular takes effect 15 days after its signing. The previous stipulations which are contrary to this Circular are now annulled.

For the Minister of Finance

Vice Minister

LE THI BANG TAM